The Power of Athlete Marketing Through NIL

LSU QB Quits Football but Continues to Provide Brands with Value

The NCAA’s Name, Image, and Likeness (NIL) deals keep getting crazier and crazier as we approach the start of this year’s NCAA seasons. If you haven’t been following, the NCAA updated its regulations regarding athlete sponsorships to allow current student-athletes to earn income from their brand image. This means college athletes can sign sponsorship agreements, star in commercials and advertisements, promote brands on their social media pages, and much more. Before this update, NCAA athletes were prohibited from signing sponsorship agreements as players were not allowed to be paid while playing college sports. 

Although most athletes received partial or full-ride scholarships and bursaries, the college sports industry has grown significantly and the athletes started to demand their fair share. In 2021, the NCAA brought in over $1.1 billion in revenue, mainly through its TV deals and media rights. Last summer, the NCAA finally agreed to allow players to earn money while playing college sports, but the money must be made through their name, image, and likeness off the field, not their athletic performances on the field.

Although this sounds like an even ground between the NCAA and its students, one athlete has found a loophole in the regulations. Myles Brennan appeared in twenty games and started three (1-2) for the LSU Tigers since arriving in 2017. Brennan, who backed up Heisman Trophy winner Joe Burrow in LSU’s 2020 National Championship victory, was set to be the starting quarterback for the Tigers in 2020, but unfortunately tore his abdomen in his third game and missed the rest of the season. He was once again slated to contend for the starting position in 2021 but broke his arm while boarding a boat for a fishing trip before training camp and missed the entire season. Brennan was unhappy being a second or third-string quarterback for the Tigers in the upcoming season so he decided to finish his degree in sports administration from LSU and call it quits. He retired earlier this week.

Although a promising athlete ended their career early apparently due to injuries, the headlines are centered around the NIL deals that Brennan signed in 2021. Brennan signed a car deal with a Ford dealership and agreed to endorsements from brands such as Smoothie King, GameCoin, and Smalls Sliders, all before he injured his arm and missed the entire season. Due to the NCAA NIL regulations, each endorsement must be centered around the athlete’s brand image. The NCAA strictly forbids any performance-related incentive or benchmark. Unfortunately, this goes as far as not including a minimum number of appearances. Each company received its endorsements and Brennan received his earnings. Brennan completed all of his endorsements in 2021 and was clear of any contractual obligations. In fact, he could have retired last season after his injury and the situation would have remained the same.

This situation may force companies looking to sign athletes to NIL agreements to be more cautious in their approach as there is not a lot of protection for brands in the event of injuries or retirements, such as Brennan's. Although the NIL hype train is still full-steam ahead, look for more athletes to cash out early once their sporting prowess and motivation decrease.

August 19, 2022 - Issue 52 of The Sport Marketeer